Chip Bilton sells sweatshirts at State U football games. He is equally likely to sell 200 or 400 sweatshirts at each game. Each time Chip places an order, he pays $500 plus $5 for each sweatshirt he orders. Each sweatshirt sells for $8. A holding cost of $2 per shirt (because of the opportunity cost for capital tied up in sweatshirts as well as storage costs) is assessed against each shirt left at the end of a game. Chip can store at most 400 shirts after each game. Assuming that the number of shirts ordered by Chip must be a multiple of 100, determine an ordering policy that maximizes expected profits earned during the first three games of the season. Assume that any leftover sweatshirts have a value of $6.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Chip Bilton sells sweatshirts at State U football games. He is equally likely to sell 200 or
400 sweatshirts at each game. Each time Chip places an order, he pays $500 plus $5 for
each sweatshirt he orders. Each sweatshirt sells for $8. A holding cost of $2 per shirt
(because of the opportunity cost for capital tied up in sweatshirts as well as storage
costs) is assessed against each shirt left at the end of a game. Chip can store at most
400 shirts after each game. Assuming that the number of shirts ordered by Chip must
be a multiple of 100, determine an ordering policy that maximizes expected profits
earned during the first three games of the season. Assume that any leftover sweatshirts
have a value of $6.
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